next step to collect?

[icybeem]

What is the name of your state? Massachusetts

Hi, I own a business and a man who lives in Florida came up to MASS and hired us. I have a written, itemized statement stating he owes us roughly $6,000 which he signed. I also have numerous emails of him thanking us for our services and telling us he is going to pay little by little bi-weekly or monthly. He wrote he knows the interest clock is ticking and said he will pay the interest too.

We got a total of three payments totaling $1,000 in a year and his last payment was March 2007. The total is now back up to $6,500 +/-.

I have called him many times and get the same answer when he does answer... I am sick, it is slow at work etc. I know these are common excuses, and if true I feel badly, but business is business, and nearly half of his debt has been a cost to me.

So, what would my next step be?

Small Claims:
Small claims is only $2000 in MA. Could I sue him in small claims in Florida where the limit is 5000?

Regular, hire an attorney type lawsuit seeking a lien or judgement on him:
Could I sue him in MA or do I need to go to Florida for that?
How much (roughly) would a full lawsuit with a laywer cost? In the sixty years my family has owned this company we have luckily not had to deal with this.

Thanks in advance for any info or direction,

icybeem

[Chien]

I would recommend that you go the attorney or CA/attorney route. (There are skilled and competent collectors in this forum, and I’m a commercial attorney. Most commonly, we work together, so please don’t put me in the middle of that one.).
There are several reasons for suggesting that you give up a percentage of recovery for the benefit of that arrangement. As I’m not a FL or MA attorney; you can be assured that none are self-serving. But I have a preliminary question: He’s in FL, he came to you and hired you in MA. Where were the services rendered or the goods delivered? Unless there is a reason that you’re limited to pursuing/suing him in MA, do it in FL
1) Presumably, his assets are in FL. If so, you’d have to domesticate a MA judgment in FL to enforce it. Skip that needless, costly and time-consuming step, if you can.
2) A CA/Atty is going to be familiar with the laws of the forum and the ways to collect/enforce.
3) A CA/Atty has easier ongoing access to the courts of the forum (you can’t be running back and forth).
4) A CA/Atty is likely to have better information about options and impediments to collection/enforcement.
5) Local recovery resources are better able to respond to serendipitous collection opportunities.
6) There is more psychological pressure, when the creditor is on your doorstep vs. a coast-length away.
Whatever local resources you use, if you choose them wisely and well, they will pay for themselves in terms of efficiency and productivity.
If you would like to PM me with questions or for references, feel free.
If you would prefer to “let your fingers do the walking”, the ACA is a place to start. Ask questions about experience in your line of work, if it’s unique in some sense, and get references.
[url]http://www.acainternational.org/[/url]

[icybeem]

Thank you for the reply.

To answer your question;
We paid to have something shipped here from Florida where we worked on it in MA for this man. 80% of all goods and services occurred in MA, 20% in Florida. The Florida shipping company has already been paid by us.

So, it would be better for me to go through a Florida Attorney/CA than a Mass one you think? Would I have to travel to Florida to do any of this? If so, the travel cost would make things the same as if a MA Attorney handled it here, no? Or can I do this phone/fax/email style?

Also, would I be paying half (or more) of the 6,000-7,000 owed to me to collect it by doing this?

Is it possible to collect a % of legal fees in addition to the debt?

Thanks again,


Icy

[debtcollector`]

I can't comment on the cost of using an attorney -- the rates can range from very reasonable to outrageous. However, if you choose to hire a collection agency, you can expect to pay 30 percent of the account value.

My advice mirrors Chien's with additional thought that few collection agencies are going to be interested in one $6,000 account. And that ones that are interested, you don't want to hire.

DC

[draygnmage]

I know that for the most part, the firm I work for gets any court costs they incurr and they also get a commission rate of 22-30%. Then again, we work with clients who are giving us thousands of files at a time, so they get a discounted rate. Fees can get up to 50% easily, but then again, 50% of the money the CA or attorney collects is better than the 0% you're getting now. You can negotiate with the CA and tell them how much you'd be willing to settle for as well as what order to apply payments in: court costs, interest, THEN principle, is how my client wants their accounts paid.